Western Digital Corporation (WDC)

Debt-to-assets ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Long-term debt	US$ in thousands	5,684,000	7,318,000	7,351,000	5,822,000	5,857,000	5,898,000	7,033,000	7,071,000	7,022,000	7,087,000	7,057,000	8,270,000	8,474,000	8,678,000	8,882,000	9,086,000	9,289,000	9,343,000	9,547,000	9,961,000
Total assets	US$ in thousands	24,188,000	23,801,000	24,385,000	24,001,000	24,546,000	25,151,000	25,047,000	25,686,000	26,259,000	25,699,000	26,025,000	26,391,000	26,132,000	25,409,000	25,552,000	25,402,000	25,662,000	25,509,000	25,860,000	26,280,000
Debt-to-assets ratio		0.23	0.31	0.30	0.24	0.24	0.23	0.28	0.28	0.27	0.28	0.27	0.31	0.32	0.34	0.35	0.36	0.36	0.37	0.37	0.38

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,684,000K ÷ $24,188,000K
= 0.23

The debt-to-assets ratio of Western Digital Corporation has shown some fluctuations over the past few quarters. The ratio has ranged from 0.23 to 0.38 over the past several quarters, indicating the proportion of the company's assets that are financed by debt.

In general, a lower debt-to-assets ratio is considered more favorable as it suggests a lower level of financial risk and a stronger financial position. A ratio below 0.5 is typically seen as a healthy level of debt relative to assets.

The company's debt-to-assets ratio has generally been below 0.3 in recent quarters, which indicates that Western Digital Corporation has a lower level of debt compared to its total assets. This suggests that the company has a relatively conservative approach to debt financing and may have a lower risk of financial distress.

However, it is important to monitor changes in the debt-to-assets ratio over time to assess the company's evolving financial structure and risk profile. Analyzing the trend in the ratio can provide insights into the company's capital structure decisions and overall financial health.